River North Building That's Home To The Onion Selling For $23M
Downtown loft offices are attracting a growing amount of investor interest and commanding solid eight-figure price tags. The latest sale is in River North, where the Feil Organization is adding to its downtown portfolio, according to Crain's Chicago Business.
Feil is buying the Central Arts Building, a seven-story loft office building at 730 North Franklin, for $23.3M. Skokie-based American Asset Management Services is the seller and was repped by CBRE's Cody Hundertmark, Tom Sitz and John Slivka. The building is 90% leased and its most prominent tenant is satirical news outlet The Onion. Feil's downtown portfolio includes 10 South LaSalle, North Michigan, and 813, 821 and 825 West Fulton.
Investors finding slim pickings in downtown office tower opportunities are checking down to loft offices in well-trafficked locations, and paying good money for the right assets. Brijus Capital sold 363 West Erie to JLL subsidiary Spaulding & Slye Investments for $35.3M in November; Brijus bought that asset for $8.5M in 2013. R2 Cos. and Walton Street partnered to buy a six-building loft office portfolio in the West and South Loop in an $86M deal in November. And R2 sold 1130 West Monroe to Groupon co-founder Brad Keywell for $7.2M in February 2016.